Shanghai Market Knows No Bounds


Over the last five years of observing and reporting on the Chinese housing market, one thing is certain. China real estate is beyond bubble. It’s post-bubble. Or even bubble-proof. With the urbanization trend still in effect, and with real estate the preferred investment for a growing middle class who don’t have enough money to shuffle into Hong Kong or further afield, China housing is the hottest real estate market around.
Shanghai is Asia’s London and New York.
On Wednesday, global property consultancy DTZ/Cushman & Wakefield said that Shanghai in particular will likely maintain double-digit growth in transaction volume and value this year. The main buyers are domestic, but foreign investors are not far behind.
Real estate investment deals, excluding land sales, are focused to total $70 billion in Shanghai in 2016, a 20% increase from about $58 billion last year, according to a report by Wakefield.
The report cited low capital costs in China (and in core economies like Japan) and yuan depreciation expectations lending to fears that now is the time to get into the market before the currency value dives. The yuan is currency trading at 6.67, but consensus estimates have it pushing closer to 7 in the next six months.

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